Average Credit Card Interest Rates by Credit Score
The average credit card interest rate is 22.15% for accounts subject to interest, according to the most recent Federal Reserve data from May 2026. But that number doesn’t tell the full story of what you’ll actually pay.
Your own annual percentage rate (APR) depends on your credit score, the card type and the issuer. A difference of just a few percentage points in APR can add up to thousands of dollars in interest over time, which makes it crucial to understand how your credit score affects the rate you’re likely to receive.
This guide breaks down what those averages mean, what counts as a good APR and how your credit score shapes the rate you are offered.
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Key Takeaways
The average credit card interest rate is 22.15% on accounts assessed interest as of May 2026: Across all accounts, the average is 20.94%, per Federal Reserve data.
Your actual APR depends on more than your score: Issuers price based on your full credit profile — payment history, debt, income and utilization.
Rates fall into broad risk tiers: Excellent credit tends to see the lowest available rates, good credit a wider mid-range and fair or poor credit the highest APRs.
A few points cost real money: On a $5,000 balance at $200 a month, moving from 20% to 30% APR adds more than $1,400 in interest and seven months of payments.
APR only matters if you carry a balance: Pay in full each month and you avoid interest entirely.
You can often lower your rate: Ask your issuer, transfer to a 0% intro APR card or improve your credit profile over time.
Summary generated by AI, verified by MoneyLion editors
Quick Answer: Average Credit Card APRs by Credit Score
Here are the numbers to know right now.
All credit card accounts: 20.94% average APR in May 2026
Accounts accruing interest: 22.15% average APR in May 2026
Source: Federal Reserve G.19 Consumer Credit report, released July 8, 2026
Credit card interest rates aren’t assigned using a simple credit score chart. Instead, issuers use your overall credit profile — factors such as payment history, debt levels, income and credit score — to decide what rate to offer.
Federal Reserve data show the average credit card APR across all accounts assessed interest is currently in the low-20% range. Within that, borrowers tend to fall into broader pricing tiers based on credit risk:
Credit profile | Typical APR range | What it means |
|---|---|---|
Excellent credit | ~18% to 23% | Strong credit history, more access to the lowest available rates |
Good credit | ~22% to 27% | Most approved applicants fall here, with a wider variation in offers |
Fair/poor credit | ~25% to 30%+ | Higher-risk borrowers with fewer low-APR options |
These ranges reflect how risk-based pricing typically works across major issuers and are drawn from issuer and market pricing data, along with Consumer Financial Protection Bureau research on risk-based lending. The Federal Reserve publishes the overall market average but does not break APRs out by credit score, so exact rates vary widely even among borrowers with similar scores.
What Is the Average Credit Card Interest Rate?
There’s no single “official” credit card interest rate because different organizations measure APRs differently. Some track rates on new credit card offers, while others measure what consumers pay on existing balances.
For example:
The Federal Reserve reports the average APR on accounts assessed interest in the low-20% range
Some industry estimates of new credit card offers tend to fall around 22% to 24%, versus the Fed's 22.15% on existing accounts assessed interest
The key takeaway: Credit card interest rates are consistently high compared to most other types of borrowing, and your personal rate depends heavily on your credit history — not just the market average.
What Is APR?
APR stands for annual percentage rate. It’s the yearly cost of borrowing money on your credit card, shown as a percentage. If you pay your full statement balance each month, you don't pay interest. If you carry a balance, the card issuer charges you interest based on your APR. A lower APR means you pay less to borrow. A higher APR means the same balance costs you more over time.
What Is a Good Credit Card APR?
A good credit card APR is any rate below the national average. Right now, that means anything under 22.15% is competitive for most cardholders. Here is a simple way to size up your rate.
Excellent: Below 18%
Good: 18% to 21%
Average: 21% to 24%
High: Above 24%
If you pay your balance in full each month, your APR matters less, because you avoid interest either way. If you carry a balance, aim for the lowest APR you can qualify for.
Average Credit Card Interest Rates by Credit Profile
Credit card interest rates aren't set using a standardized credit score chart, and issuers don't publish official APRs by FICO score band. Instead, credit card pricing is based on risk, meaning lenders evaluate your overall credit profile to determine the rate you’re offered.
However, borrowers tend to fall into general pricing tiers based on credit quality. These tiers reflect how credit card issuers typically structure risk-based pricing across their portfolios, as described in Federal Reserve data and Consumer Financial Protection Bureau research.
In general:
Borrowers with strong credit profiles are more likely to qualify for the lowest available APRs
Borrowers with moderate credit profiles tend to receive a wider range of offers, often clustered in the mid-to-high 20% range
Borrowers with weaker credit profiles typically see the highest APRs and fewer low-rate options
These differences reflect how lenders price unsecured credit. Since credit cards are not backed by collateral, issuers charge higher interest rates when they perceive higher repayment risk.
While your credit score is an important factor, it is only one part of the broader credit evaluation used to determine your final APR.
Why Credit Score Matters for Your APR
Credit card issuers don’t know you personally when you apply. Instead, they use your credit profile to estimate risk.
Borrowers with stronger credit histories — especially those with consistent on-time payments and low credit utilization — generally get lower interest rates. Borrowers with weaker credit profiles are more likely to receive higher APRs.
From the lender’s perspective, higher rates help offset the increased risk that a balance may not be repaid. This is why two people with similar incomes can still receive very different credit card offers.
How Credit Card APRs Are Set
Most credit card interest rates start with the prime rate, which typically moves in line with changes to the Federal Reserve’s benchmark interest rate.
From there, card issuers add a margin to the prime rate to determine your final APR. This margin varies by card and the applicant’s overall credit profile. That’s because credit cards are unsecured loans, meaning there’s no collateral backing the balance. If a borrower doesn’t repay, the issuer has no asset — like a house or car — to recover losses.
To account for that risk, issuers price cards using internal underwriting models that consider factors such as credit history, debt levels, income, and perceived repayment risk. As a result, even small changes in your credit profile can lead to meaningful differences in the APR you’re offered.
What Higher APRs Cost You in Real Dollars
A few percentage points may not sound like a big deal when you're comparing credit card offers. But if you’re carrying a balance, those extra points can add up fast.
For example, on a $5,000 credit card balance with fixed monthly payments of $200, a higher interest rate can significantly increase both the time it takes to pay off the credit card debt and the total interest paid.
$5,000 balance at 20% APR
Interest paid: $1,522
Time to pay off: 33 months
$5,000 balance at 25% APR
Interest paid: $2,136
Time to pay off: 36 months
$5,000 balance at 30% APR
Interest paid: $2,944
Time to pay off: 40 months
At a higher APR, more of each payment goes toward interest rather than reducing the principal balance. This slows down repayment and increases the total cost of borrowing.
That's why borrowers who carry a balance should pay close attention to APR. A few percentage points can translate into years of extra payments and thousands of dollars in additional interest — especially if you’re only paying the minimum due.
Why New Credit Card Offers and Existing Account Rates Can Differ
Credit card interest rates don’t always reflect a single number across the market because they measure different things depending on the source. For example, rates shown on new credit card offers represent what issuers are currently advertising to new applicants. These offers can vary based on promotional pricing, applicant credit profiles and product type.
Rates on existing accounts reflect what current cardholders are actually paying on balances they already carry.
The Federal Reserve tracks both types of data and typically finds differences between advertised offer rates and the average APR charged across existing accounts. This gap exists because promotional offers, account-specific pricing and long-standing customer relationships can all influence the final rate a borrower receives.
What Else Besides Credit Score Affects Your APR
Two people with the same credit score can still receive different APRs. While a credit score is one of the most important factors in determining your APR, it’s not the only one.
Card issuers also evaluate your full financial profile, including income, existing debt, credit utilization and payment history. In many cases, credit cards are approved with a range of possible APRs rather than a single fixed rate. That means two borrowers with similar credit scores can still receive different interest rates depending on how their overall profile is assessed.
Other factors, such as the type of card you apply for — rewards cards, balance transfer cards or no-interest cards — can also influence the rate you’re offered.
How To Get a Lower Credit Card Interest Rate
If your credit card APR feels too high, you may be able to reduce it over time in several ways.
Improve Your Credit Profile
A stronger credit profile can help you qualify for cards with lower rates in the future. Credit card debt affects your credit score, and high credit utilization can hurt it. Paying off your debt can boost your credit score.
Consider a Balance Transfer Option
A balance transfer credit card with a 0% introductory APR offer may help reduce interest costs while you pay down existing debt.
Ask Your Issuer for a Lower Rate
It’s often possible to request a lower APR directly from your card issuer, especially if you’ve built a history of on-time payments or improved your credit since opening the account.
Use Competing Offers as Leverage
When negotiating, it can help to mention lower-rate offers you've received from other issuers and point to your history of on-time payments.
Bottom Line
The average credit card interest rate can help you understand the broader market, but your actual APR will depend on factors such as your credit score, income and overall credit profile.
A 20% APR and a 25% APR may not seem that far apart when you're comparing credit card offers. But as the examples above show, those differences can add up over time.
Whether you're shopping for a new card or evaluating one you already have, it helps to know what rates borrowers with similar credit profiles are receiving and what options are available if you want a lower APR.
Average Credit Card Interest Rates by Credit Score FAQs
What is the average credit card interest rate?
The average credit card interest rate is 20.94% across all accounts as of May 2026, according to the Federal Reserve's G.19 Consumer Credit report. For accounts with a balance and accruing interest, the average rises to 22.15%.
How does your credit score affect your APR?
Your credit score is one of the biggest factors in the rate an issuer offers, with higher scores generally earning lower APRs. Lenders use it to gauge repayment risk, so excellent credit tends to unlock the lowest advertised rates while fair or poor credit sees the highest.
What is a good APR on a credit card?
A good credit card APR is generally any rate below the national average of 22.15%. If you have excellent credit, you can often qualify for rates well under that, and if you pay your balance in full each month, the APR matters less because you avoid interest entirely.
Why is my credit card APR so high?
Credit card APRs are high because most cards carry variable rates built from the prime rate plus a margin the issuer adds for your credit risk. The prime rate rose sharply during the Federal Reserve's 2022 and 2023 rate hikes and has stayed elevated since. Over that stretch, the average APR on accounts assessed interest climbed from roughly 14.5% in early 2022 to more than 22% by 2024, and it has held near record highs even after the Fed paused — partly because issuers have widened their margins, which the CFPB found reached an all-time high.
Can you lower your credit card APR?
Sometimes. You can call your issuer and request a rate reduction, transfer a balance to a card with a 0% intro APR, pay down debt to lower your utilization or improve your credit over time to qualify for better rates.
Key Terms
Average credit card interest rate: The typical APR across cards — 22.15% on accounts assessed interest as of May 2026.
Annual percentage rate (APR): The yearly cost of borrowing on your card, shown as a percentage.
Prime rate: The benchmark rate, tied to the Fed's rate, that most variable card APRs start from.
Margin: The percentage an issuer adds to the prime rate based on your credit risk.
Risk-based pricing: The practice of setting your APR according to your overall credit profile.
Credit utilization: The share of your available credit in use, a key factor in your rate.
Unsecured credit: Borrowing not backed by collateral, which is why card APRs run high.
Balance transfer card: A card with a 0% intro APR that can lower interest costs while you pay down debt.
Sources
Federal Reserve: Consumer Credit (G.19)
CFPB: What is a credit card interest rate? What does APR mean?
myFICO: Credit education: credit scores
Summary generated by AI, verified by MoneyLion editors
Photo credit: Aum racha / iStock.com
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